Q. How do the majority of people get rich? A. According to FORTUNE MAGAZINE (12/13/04)… by REAL ESTATE INVESTING!

"Buy Land", Mark Twain once said. "They've stopped making it."

There's something about real estate that captures the imagination in a way that quarterly 401(K) statements just don't. Perhaps it's the realness of it. Many companies that appeared in the stock pages 30 years ago no loner exist, but that old, seven-bedroom Victorian on the corner is probably still there. Even if it's not, the land beneath it is. And chances are, it's worth a heck of a lot more than it was back then. Real estate is "an investment vehicle that never goes out of business," says Marty Stone, co-author of The Unofficial Guide to Real Estate Investing. "That's as close to being a completely secure place to put your money as anything," and unlike stocks and bonds, real estate is insurable against loss.

(Is it) Secure? With all this talk of a real estate bubble? True, certain markets…New York City, San Francisco…may well be over-valued, but that doesn't mean there aren't deals to be found. Since the late 1960's, not one year has gone by when the median existing home price in the U.S. has fallen. One reason: Real estate is a limited resource. Another advantage: leverage. If you put $30,000 down on a $300,000 property and it appreciates 3% in the first year, you've just notched a 30% return. That doesn't include any rental income the property might be bringing in. How else can you make so much with so little?

PS: by Brous & Associates, Realtors:

According to the Realtors Association of Maui: Last year on Maui, the Median price for a home increased by 25%, while the Median price for a condominium increased by 28%. Most believe this trend will not change in the near future. Our market is fueled by low inventories and increasing demand. Even a change in our historic low interest rates should not adversely affect the market unless they climb to the double digits. "The Baby Boomers are on their way… We are a stubborn bunch and it will take more than a little interest hike to prevent us from retiring to this paradise called Maui!" … Dale Brous
 

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